Take a look at the following communication services stocks that showed higher volumes than usual: Twilio Inc., Zynga Inc., Pearson plc.
A quick recap of where the last trading session ended: Leading equity indices in the US rose as Dow Jones gained 1.26% and closed at 32,400. S&P 500 ended the session at 3,770.55 after a 1.36% gain.
Why trading volume matters?
Trading volume is simply the total number of shares traded including both buy and sell orders. If a stock has appreciated on high volume, it is more likely to be a sustained move compared to an appreciation with low volume. Typically, high volume trading sessions are considered significant occurrences and closely watched by traders.
Price action was mostly bullish yesterday with some communication services stocks recording abnormally high trading volumes. Here's a recap:
Twilio | 820% above rolling average Bearish session pushes Twilio to record lows around $22.62
Twilio Inc. outpaced its average daily trading volume (5.38 million) with 44.11 million shares traded yesterday. Over the last 9 days, Twilio has fallen 44.21%. yesterday's session continued down the same path: early in yesterday's session, Twilio dropped to $41 from $65.36 at the end of Thursday, before closing at $42.74. During the session, it lost 34.61%.
Twilio hit a significant low of $42.74 around a day ago, but has since recovered 52.92%. The company has a market cap of $7.83 billion with an average daily trading volume of 5.38 million shares.
Following the release of quarterly results, Twilio trades at $42.74.
Zynga | 600% above rolling average Zynga suffers weak session with 2.04% loss; downside halted at $8.14
Trading volume peaked at 227.57 million shares yesterday, thereby obliterating the daily average of 37.88 million by 600%. Zynga's downtrend has seen it decline 3.42% in 8 days yesterday's session continued the recent downtrend: during yesterday's session, Zynga toiled and struggled for upward momentum before closing at $8.18. By the close, the Zynga suffered a 17 cents or 2.04% loss.
Having set a significant high of $9.27 11 months ago, Zynga is trading 44.71% lower. So far in 2022, it has performed better than the Nasdaq by 76.24%. Zynga has a market cap of $9.16 billion with an average daily volume of 37.88 million shares. Zynga last reported revenue of $694.9 million with an EPS of 9.19 cents.
Pearson Plc | 526% higher than rolling average Pearson Plc closed at $10.53 after losing 2.77% yesterday
Yesterday's trading volume peaked at 2.88 million shares, thereby blitzing the daily average of 546,760 by 526%. Pearson Plc's bearish run has lasted 6 days so far (-31 cents). yesterday's session continued the recent downtrend: an influx of sellers pushed Pearson Plc to end the session lower around $10.53, while establishing a $10.48 to $11 session range yesterday.
Pearson Plc reached a significant high of $11.14 around 8 days ago but has lost 2.78% since then. So far in 2022, it has been outperforming the Nasdaq by 76%. Pearson Plc's market cap is currently $7.64 billion with an average daily volume of 546,760 shares.
— Average trading volume refers to a 21-day rolling average.